Pejepscot Industrial Park, Inc. v. Maine Central Railroad

215 F.3d 195, 2000 U.S. App. LEXIS 14545
CourtCourt of Appeals for the First Circuit
DecidedJune 23, 2000
Docket99-2016
StatusPublished
Cited by90 cases

This text of 215 F.3d 195 (Pejepscot Industrial Park, Inc. v. Maine Central Railroad) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pejepscot Industrial Park, Inc. v. Maine Central Railroad, 215 F.3d 195, 2000 U.S. App. LEXIS 14545 (1st Cir. 2000).

Opinion

LYNCH, Circuit Judge.

In 1995, Congress enacted the ICC Termination Act (ICCTA), 1 which abolished the 108-year-old Interstate Commerce Commission and substantially deregulated the rail and motor carrier industries. See H.R.Rep. No. 104-311, at 82 (1995), reprinted in 1995 U.S.C.C.A.N. 793, 793. In the ICC’s place, the ICCTA established the Surface Transportation Board (STB) within the Department of Transportation. See 49 U.S.C. § 701(a).

The central question in this case is whether the federal district courts have jurisdiction over a shipper’s claim that a rail carrier has violated the ICCTA provision that requires carriers to provide service upon reasonable request. See 49 U.S.C. § 11101(a) (“A rail carrier providing transportation or service subject to the jurisdiction of the [STB] under this part shall provide the transportation or service on reasonable request.”). The district court held that the STB’s jurisdiction over such claims is exclusive, and thus the federal courts have no jurisdiction, except to enforce certain orders issued by the STB. See Pejepscot Indus. Park, Inc. v. Maine Cent. R. Co., 59 F.Supp.2d 109, 114-15 (1999). Accordingly, the court dismissed with prejudice the shipper’s ICCTA claim for lack of subject matter jurisdiction and declined to exercise supplemental jurisdiction over its state law claims. See id. at 115. We hold that the district court has subject matter jurisdiction over the shipper’s ICCTA claim, and that it should stay that claim while referring it to the STB under the doctrine of primary jurisdiction,

X.

For the purpose of determining whether the district court has subject matter jurisdiction, we take the well-pleaded allegations in plaintiffs complaint as true. See Puerto Rico Tel. Co. v. Telecommunications Reg. Bd., 189 F.3d 1, 7 (1st Cir.1999). Founded in 1992, plaintiff Pejep-scot Industrial Park, Inc. (d/b/a Grimmel Industries) engages in the business of salvaging, selling, and shipping scrap metal. Grimmel’s facility in Topsham, Maine is connected by a 3,000-foot spur railroad track (the Pejepscot Spur Line) to the Lewiston Industrial Track, the main railroad track in the area.

In February 1991 one of the defendants, Maine Central Railroad (“MEC,” a common carrier providing railroad freight services), executed a deed granting sections of the Lewiston Industrial Track to the State of Maine, including the Lewiston Lower Road Branch, the part of the main line to which the Pejepscot Spur Line connects. In conveying the Lewiston Lower Road Branch, however, MEC expressly reserved “a certain parcel of land in Topsham known as the ‘Pejepscot Spur Line.’ ” (According to the complaint, MEC does not own the land over which the Pejepscot Spur Line runs; that land is owned by Grimmel and its neighbor, the Eastbrook Timber Company.) It is this spur line, and defendants’ desire to rip it up and sell it for scrap, that is at the heart of this case.

As part of the sale of portions of the Lewiston Industrial Track, MEC entered into a freight easement agreement with the State of Maine. The agreement provided that MEC retained all of its rights and obligations under federal law to provide common carrier freight service to *198 shippers located on the lines conveyed to the state.

By 1994, Grimmel was ready to begin shipping scrap metal. The most efficient way to transport scrap metal is by rail. Grimmel requested that the defendants (MEC, Springfield Terminal Railway, which operates MEC’s railroad, and their common owner, Guilford Transportation Industries) provide common carrier freight service to Grimmel’s Topsham facility. Defendants refused, claiming that no appropriate rail cars were available. Grim-mel shipped its material by different means for a time, and then requested rail service again. This time, defendants quoted Grimmel shipping rates, which Grimmel accepted. Before Grimmel could actually begin shipping, however, defendants again refused to provide service. Grimmel later began negotiations with the State of Maine over repairs to the Lewiston Lower Road Branch and the provision of service to Grimmel’s facility in anticipation of MEC’s formal abandonment of rail service on the Lewiston Industrial Track line.

In June 1998, MEC filed with the STB a Notice of Exemption for abandonment and discontinuance of service over the Lewi-ston Industrial Track line. MEC represented that the state already owned the Lewiston Lower Road Branch portion' of the line, and that the State of Maine, or a third party acting in conjunction with it, would acquire the remainder of the line and/or operating rights over it after it was abandoned. MEC also maintained that no salvage operations would be undertaken after abandonment — that is, that the line would not be torn up — and that the abandonment would not affect carrier operations in the area. The STB permitted MEC to abandon the line.

Defendants subsequently informed Grimmel that they intend to rip up the Pejepscot Spur Line and sell it for scrap. The state has agreed to upgrade the Lewi-ston Lower Road Branch, provided Grim-mel upgrades the Pejepscot Spur Line. Grimmel has asked for MEC’s permission to do so (at Grimmel’s expense), but MEC has refused to grant permission. MEC’s refusal prevents Grimmel from obtaining rail freight service.

II.

Grimmel filed a six-count First Amended Complaint in the district court. Count I sought a declaration of ownership rights of the Pejepscot Spur Line, while Count II sought an injunction to prevent defendants from destroying the spur or interfering with Grimmel’s right to repair, maintain, and use it. Count III alleged that the defendants unlawfully refused to provide rail service in violation of 49 U.S.C. § 11101(a), which requires rail carriers to provide service to shippers on reasonable request.

Count IV of Grimmel’s complaint alleged that defendants violated their duty to Grimmel as a third-party beneficiary of the freight easement agreement between MEC and the State of Maine. Counts V and VI alleged breach of contract and tortious interference with business advantage and expectancies. Before answering the complaint, defendants moved under Fed.R.Civ.P. 12(b)(1) to dismiss the action with prejudice for lack of subject matter jurisdiction, or, in the alternative, to dismiss the action without prejudice under the doctrine of primary jurisdiction for all the issues within the special expertise of the STB.

Grimmel’s complaint asserted two bases of subject matter jurisdiction: federal question jurisdiction under 28 U.S.C. § 1381 and supplemental jurisdiction under 28 U.S.C. § 1367(a).

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Cite This Page — Counsel Stack

Bluebook (online)
215 F.3d 195, 2000 U.S. App. LEXIS 14545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pejepscot-industrial-park-inc-v-maine-central-railroad-ca1-2000.